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How Microsoft & Tierion are Working to Process Data on Bitcoin Blockchain

How Microsoft & Tierion are Working to Process Data on Bitcoin Blockchain

​Tierion, which has been collaborating with the $547 billion technology giant Microsoft since February of 2017, has finally launched its data verification platform which processes massive amounts of information using the secure and immutable bitcoin blockchain.

In February, Microsoft Azure, the cloud services provider of Microsoft, revealed in a statement that in partnership with Tierion, it has been attempting to create platforms on top of the bitcoin blockchain to secure information more efficiently.

“Public blockchains such as Bitcoin are exceptionally secure, but slow. The current throughput of the Bitcoin network is about four transactions per second. Tierion solves this scalability problem by cryptographicallylinking millions of data points to a single transaction,” Cale Teeter of Microsoft wrote in an official blog post.

In the past, experts including blockchain, cryptocurrency and smart contracts pioneer Nick Szabo have offered similar points to Teeter, Microsoft and Tierion in that the Bitcoin network and blockchain can’t handle massive amounts of data on-chain, without proper off-chain or two-layer solutions.

“At scale, you can't pay for coffee on a premium global blockchain. You'll need a peripheral financial network that settles on that blockchain,” said Szabo.

The statement of Szabo in regards to the settlement of transactions is also applicable in the settlement of data because essentially, within the bitcoin network, transactions are also considered data. The transaction fee of payments depend on the size of transactions, because the number of inputs and outputs can significantly differ the size of transactions.

“Tierion solves this problem by providing a ‘proof engine’ for the Internet. We’ve created a technology called Chainpoint that lets anyone prove with absolute certainty, when data was created and if it has been modified from its original state. Tierion works by creating a proof that links data to a transaction on a blockchain. This is called anchoring. Anyone with this proof can verify the data’s integrity and timestamp without relying on a trusted authority,” Wayne Vaughan, the founder & CEO of Tierion wrote in an official blog post.

In the future, Tierion aims to launch its Chainpoint platform on top of the Tierion Network and create a native token called the Tierion Network Token. TNT, which will act as an economic incentive for participants in the network infrastructure, will allow large-scale commercial companies to verify and approve data on top of a blockchain-based platforms efficiently.

Already, various multi-billion dollar companies and startups including Microsoft, Philips, Accredible and Tokken have utilized the Tierion network and Chainpoint platform to process data.

Author : Joseph Young

Joseph Young is a finance and tech journalist based in Hong Kong. He has worked with leading media and news agencies in the technology and finance industries, offering exclusive content, interviews, insights and analysis of cryptocurrencies, innovative and futuristic technologies.